General Motors has reached a tentative deal with the United Auto Workers to cut health care costs.
GM Chairman Rick Wagoner says the company will save millions of dollars because of the new deal, which still has to be ratified by the rank and file.
Those specific details aren't being released by Wagoner. But we can tell you GM's UAW workers and retirees will be certainly be paying more for health care.
The tentative agreement covers more than 750,000 hourly workers and dependents, retirees and surviving spouses in the United States.
Wagoner also indicated some manufacturing plants will be closed by the end of the year. He wouldn't indicate how many or which ones.
The company also is considering selling a portion of its profitable GMAC subsidiary.
All of this is done to save the company money at a time when it's reported a quarterly loss of $1.6 billion.
Wagoner also announced GM will contribute to a new voluntary independent employee benefit plan. Similar plans are widely used by companies all over the U.S.
So if this is ratified, GM workers and retirees will be more in line with other companies when it comes to health care.
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